British GSK Executive Accused Of China Bribery
The British former head of GlaxoSmithKline's (GSK) China unit has been accused of bribery.
Chinese investigators claim Mark Reilly ordered his salespeople to bribe doctors and hospital officials to use the drug company's products.
A statement released by police in the central city of Changsha said that resulted in "illegal revenue" of more than £100m.
Mr Reilly and two Chinese executives have also been accused of bribing government officials in Beijing and Shanghai.
A Ministry of Public Security official told a news conference in Beijing that GSK departments "offered bribes to hospitals and doctors as well as personnel to boost their sales".
GSK responded to the developments with a short statement: "We take the allegations that have been raised very seriously.
"They are deeply concerning to us and contrary to the values of GSK.
"We want to reach a resolution that will enable the company to continue to make an important contribution to the health and welfare of China and its citizens."
The company's share price fell when the FTSE 100 opened for business on Wednesday.
Mr Reilly, who left China in July last year only to return in September to assist the investigation, has since been prevented from leaving the country.
A spokesman from the Chinese Public Security Bureau told Sky News that he remained in China but would not be drawn on whether Mr Reilly would now be arrested.
The British Embassy in Beijing, which has been across the allegations against GSK since they first emerged, referred all questions to GSK.
"We are aware of recent developments in the case but cannot comment whilst it is still ongoing. We are in close contact with GSK". an embassy spokesman said.
China is a key growth market for large drug-makers, which are counting on the country's swelling middle class to offset declining sales in Western countries.
Before the scandal, GSK's China sales had risen 14% year-on-year in the three months to end-June, but revenue in the country plunged 61% in the third quarter and 29% in the final quarter of 2013.
The crackdown reflects a growing determination by Chinese authorities to stamp out corporate bribery and corruption, which can drive up prices for consumers.